Stock Market Opens Higher as Broadcom Secures Major AI Financing and Tech Giants Report Earnings
U.S. stock markets are pacing for a higher open, looking to build on previous momentum as the artificial intelligence trade regains traction. Early market indicators showed slightly lower oil prices and a declining 10-year Treasury yield, providing a supportive backdrop for Tuesday’s trading session.
At the forefront of the morning’s financial news, Broadcom has finalized $63 billion in financing to facilitate artificial intelligence chip and networking gear purchases by Anthropic. Major financial institutions including Bank of America, Citigroup, Morgan Stanley, and Blackstone participated in the arrangement, which also involves Broadcom providing certain financial guarantees against potential losses.
Broadcom CEO Hock Tan addressed the development, stating that the extraordinary pace of growth in AI compute demand validates the availability of capital and positions Broadcom to enable that expansion. Meanwhile, Meta Platforms expanded the size of its Class A secondary stock offering to $25 billion, up from a previously planned $22.5 billion, priced at $625 per share. The equity-raise news had previously caused Meta shares to slip 1.9% in the prior session to $630.56.
In related semiconductor and hardware news, Nvidia announced a $3 billion investment in Meta’s equity offering alongside an expanded partnership centered on the Muse platform to optimize inference and training performance. Meta plans to broaden its utilization of Nvidia hardware, integrating Vera Rubin racks and advanced networking equipment into its infrastructure.
Data center suppliers also captured investor attention. Celestica shares surged more than 12% following a significant earnings beat and 2027 profit and sales guidance that outpaced analyst projections. The company, which counts Google and Meta among its key customers, noted that customer demand forecasts for 2028 are meaningfully higher than its upcoming 2027 revenue outlook. Corning also reported a modest beat on third-quarter revenue and earnings as demand for fiber optic cables continues to climb due to artificial intelligence expansion, though shares remained flat.
In the industrial sector, Boeing reported a mixed quarter featuring a wider-than-expected loss of 34 cents per share, though both revenue and free cash flow topped expectations. Chief Executive Officer Kelly Ortberg’s ongoing turnaround focuses heavily on cash flow as a critical metric, alongside reported progress in stabilizing 737 Max production at a rate of 47 units per month. Boeing also posted positive beats across its defense and services business lines.
Consumer goods and shipping giants delivered varied results. Coca-Cola reported a beat on both earnings and revenue, supported by a 7% increase in organic sales and strong international performance, particularly with Coke Zero growing 16% for the second consecutive quarter. The company raised its full-year earnings growth outlook to at least 11% year over year. Package delivery leader UPS beat quarterly revenue and earnings per share estimates, raising its full-year guidance and increasing its adjusted free cash flow target to $6.1 billion, which pushed shares up 2%.
Conversely, Whirlpool faced widespread disappointments as quarterly revenue came in light, operating income missed expectations, and full-year guidance was lowered. The major appliance manufacturer, whose brands include KitchenAid, Maytag, and JennAir, saw its shares fall 7% amid ongoing weakness in the housing market.
